Suppose that there are two types of cars, good and bad. The qualities of cars are not observable but are known to the sellers. Risk-neutral buyers and sellers have their own valuation of these two types of cars
Types of Cars Buyers Valuation Seller Valuation
Good (50% probability) 5,000 4,500
Bad ( 50% probability) 3,000 2.500
When a buyer does not observe the quality, what is the highest price she will offer for a used car if she ignores adverse selection?
A. $2,500
B. $3,000
C. $4,000
D. $4,500

Answers

Answer 1

Answer:

C. $4,000

Explanation:

If he buyer does not have complete information about the car's quality, he/she will likely offer the expected value for a car = ($3,000 x 50%) + ($5,000 x 50%) = $4,000 car. In this type of scenarios, sellers of lemons (bad cars) are benefited since they are able to get a higher price, but sellers of goods cars are hurt because buyers assume their cars are bad.


Related Questions

Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $41,300 and the Export Products Division's divisional segment margin is $93,700. The total amount of common fixed expenses not traceable to the individual divisions is $106,800. What is the company's net operating income (loss)?
a) $241,800
b) $135,000
c) $28,200
d) $135,000

Answers

Answer:

c) $28,200

Explanation:

Calculation for What is the company's net operating income (loss)

Governmental products division's divisional margin segment $41,300

Add Export Products Division's divisional segment margin $93,700

Total divisional segment margin $135,000

($41,300+$93,700)

Less Common fixed expenses not traceable to the individual divisions ($106,800)

Company's net operating income $28,200

($135,000-$106,800)

Therefore the company's net operating income is $28,200

***ECONOMICS***Income tax is money that has to be paid to the government based on:

A. the amount of money a person earns.

B. the value of a person's home or land.

C. the cost of a product being purchased.

D. the number of cars a person owns.

Answers

Answer:

A: The amount of money a person earns

Explanation:

A-pex

Income tax is one of the most common types of taxes levied by governments around the world. It is usually calculated as a percentage of a person's taxable income, which is the amount of money that a person earns after certain deductions and exemptions have been taken into account.

On what factors does the specific rates depend upon ?

The specific tax rates and income brackets vary depending on the country and the tax system in place. Some countries have a progressive income tax system, where the tax rate increases as income increases. Other countries have a flat tax system, where everyone pays the same tax rate regardless of their income.

In many countries, income tax is used to fund public services and programs, such as education, healthcare, infrastructure, and social welfare programs. The revenue generated from income tax is typically the largest source of government revenue in many countries.

In addition to federal or national income tax, many countries also have state or provincial income tax systems that levy additional taxes on top of the federal income tax. Some countries also have various tax credits, exemptions, and deductions that can reduce a person's taxable income and lower their overall tax burden.

Learn more about specific tax rates  at :

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Adelberg Company has two products: A and B. The annual production and sales of Product A is 1,900 units and of Product B is 1,300 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.7 direct labor-hours per unit. The total estimated overhead for next period is $101,075. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and Order Size--with estimated overhead costs and expected activity as follows:
Expected Activity
Activity Cost Pools Estimated Overhead Costs $ Product A Product B Total

Activity 1 $31,031 1,000 300 1,300
Activity 2 22,249 1,600 300 1,900
Order size 15,476 200 200 400
Total $ 68,756 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate under the traditional costing system is closest to:________
a. $11.71 per DLH
b. $38.69 per DLH
c. $171.89 per DLH
d. $23.87 per DLH

Answers

Answer:

$60.53 per DLH

Explanation:

Calculation for what the predetermined overhead rate under the traditional costing system is closest to:

First step is to calculate the Direct Labor hours each product

Using this formula

Direct Labor hours=Annual production and sales*Direct Labor hour per unit

Direct Labor hours for Product A=1,900 units*0.4 direct labor-hours per unit

Direct Labor hours for Product A=760

Direct Labor hours for Product B=1,300 units*0.7 direct labor-hours per unit

Direct Labor hours for Product A=910

Second step is to calculate the Total Direct Labor hours for Product for Product A and Product B

Product A and B Total Direct Labor hours for Product =760+910

Product A and B Total Direct Labor hours for Product=1,670

Now let calculate the predetermined overhead rate under the traditional costing system using this formula

Predetermined overhead rate =Estimated Overhead/Activity base(Direct Labor Hours)

Let plug in the formula

Predetermined overhead rate=$101,075/1,670

Predetermined overhead rate=$60.53 per DLH

The predetermined overhead rate under the traditional costing system is closest to:$60.53 per DLH

Jeff and Riley were married for 35 years when Riley died in July of 2016. The couple have two children who are 6 and 10 years old. Which of the following applies to Jeff regarding filing status?a) Jeff can file using any status he wants for the next 3 yearsb) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2017 and 2018c) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2016 onlyd) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2017 only

Answers

Answer:

(D) I think

Explanation:

When your husband or spouse dies,you file as a widower. If he has children he could get extra benefits because he can file his kids as a Dependent on his Taxes.

Hope this helps:)!

Stay beautiful ❤️

With Riley having died in 2016, the procedure would be that b) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2017 and 2018.

Special Qualifying WidowerAllows a widower to still fill taxes jointly as a married person for two years after the spouse dies. Can only apply if there is at least a single dependent child.

There are two dependent children in this scenario so Jeff qualifies for this filling status. As Riley died in 2016, Jeff's two years would be the years 2017 and 2018.

In conclusion, option B is correct.

Find out more on the special qualifying widower status at https://brainly.com/question/26021534.

Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6380000 on March 1, $5270000 on June 1, and $8350000 on December 31. Swifty Corporation borrowed $3240000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6380000 note payable and an 11%, 4-year, $12650000 note payable. What is the actual interest for Swifty Corporation

Answers

Answer:

Swifty Corporation

The actual interest for Swifty Corporation is:

$2,418,300

Explanation:

a) Data and Calculations:

Expenditures were

on March 1,          $6,380,000

on June 1,            $5,270,000

on December 31 $8,350,000

Borrowings:

on January 1 on a 5-year, 12% note = $3,240,000  Interest =   $388,800

Note payable, 10%, 3-year =                $6,380,000  Interest =  $638,000

Note payable, 11%, 4-year =               $12,650,000  Interest = $1,391,500

Total interest for Swifty Corporation = $2,418,300

b) Computation of interests:

12% note = $3,240,000 * 12% = $388,800

10% note = $6,380,000 * 10% = $638,000

11% note = $12,650,000 * 11% = $1,391,500

Using your accounting knowledge, fill in the following separate income statements a through e. Identify any negative amount by putting it in parentheses.
Statements:
a b c d e
Sales $100,000 $805,000 $2,000 $450,000 $100,000
Cost of goods sold
Merchandise inventory (beginning) $10,000 $0 $100 $80,000 $25,000
Total Cost of merchandise purchases $30,000 $300,000 $0 $100,000 $10,000
Merchandise inventory (ending) ($10,000) $10,000 ($10) ($50,000) ($10,000)
Cost of goods sold $30,000 $290,000 $90 $130,000 $25,000
Gross Profit $70,000 $515,000 $1,910 $320,000 $75,000
Expenses $10,000 $150,000 $1,000 $400,000 $50,000
Net Income (loss) $60,000 $365,000 $910 ($80,000) $25,000

Answers

Answer:

Income Statements           a             b                c                d                 e

Sales                         $100,000   $805,000  $2,000   $450,000  $100,000  

Cost of goods sold  ($30,000)  ($290,000)     ($90)  ($130,000) ($25,000)

Gross Profit               $70,000     $515,000    $1,910   $320,000   $75,000

Expenses                  ($10,000)   ($150,000) ($1,000) ($400,000) ($50,000)

Net Income (loss)     $60,000    $365,000       $910    ($80,000)   $25,000

Explanation:

a) Data and Calculations:

Income Statements             a           b                 c                  d                 e

Sales                            $100,000  $805,000  $2,000  $450,000  $100,000

Cost of goods sold

Merchandise inventory

(beginning)                  $10,000     $0               $100     $80,000   $25,000

Purchases                   $30,000   $300,000     $0       $100,000    $10,000

inventory (ending)      ($10,000)    ($10,000)   ($10)     ($50,000)  ($10,000)

Cost of goods sold     $30,000   $290,000      $90    $130,000   $25,000

Gross Profit                 $70,000    $515,000  $1,910    $320,000   $75,000

Expenses                     $10,000    $150,000  $1,000   $400,000   $50,000

Net Income (loss)       $60,000   $365,000     $910    ($80,000)  $25,000

Corporation makes an extra large part to use in one its fabulous products. A total of 22,000 units of this extra large part are produced and used every year. The company's costs of producing the extra large part at this level of activity are below:
Per Unit
Direct materials $4.70
Direct labor $9.30
Variable manufacturing overhead $9.80
Supervisor's salary $5.20
Depreciation of special equipment $3.60
Allocated general overhead $8.80
An outside supplier has offered to make the extra large part and sell it to for $31.90 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the extra large part has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make the extra large part could be used to make more of one of the company's other fabulous products, generating an additional segment margin of $34,000 per year for that product (Q). What would be the annual financial advantage (disadvantage) for Corp. as a result of buying the extra large part from the outside supplier?

Answers

Answer: Financial disadvantage of -$29,800

Explanation:

If extra large part is produced inhouse;

= Direct materials + direct labor + Variable manufacturing overhead + Supervisor's salary + opportunity cost of making other products

= ((4.7 + 9.3 + 9.8 + 5.2) * 22,000) + 34,000

= $672,000

Cost if bought outside;

= 31.90 * 22,000

= $701,800

Financial advantage ( disadvantage) = 672,000 - 701,800

= -$29,800

Newton Manufacturing has 31,000 labor hours available for producing M and N. Consider the following information: Product M Product N Required labor time per unit (hours) 2 3 Maximum demand (units) 6,500 8,000 Contribution margin per unit $ 5 $ 5.70 Contribution margin per labor hour $ 2.50 $ 1.90 If Newton follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate

Answers

Answer:

total contribution margin = $68,500

Explanation:

31,000 hours of labor available

                                                                     Product M            Product N

Required labor time per unit (hours)                 2                           3

Maximum demand (units)                               6,500                    8,000

Contribution margin per unit                             $5                      $5.70

Contribution margin per labor hour               $2.50                    $1.90

since the constraint here is the total number of labor hours, the company must first produce the product that generates the highest contribution margin per labor hour = product M.

total units produced of product M = 6,500

total labor hours required = 6,500 x 2 = 13,000

contribution margin product M = 13,000 x $2.50 = $32,500

remaining labor hours = 31,000 - 13,000 = 18,000

total units of product N produced = 18,000 / 6 = 6,000

contribution margin product N= 18,000 x $2 = $36,000

total contribution margin = $68,500

During March 2019, Alaska Corporation recorded $266,000 of costs related to factory overhead. Alaska's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $250,000 would be incurred, and 12,500 direct labor hours would be worked. During March, 12,500 hours were actually worked. Use this information to determine the amount of overhead over or under applied. Enter overapplied overhead as a negative number. (round

Answers

Answer:

Underapplied overhead= $16,000

Explanation:

Because the estimated and real direct labor hours are the same, the estimated overhead equals the allocated overhead.

Allocated overhead= $250,000

Actual overhead costs= $266,000

To calculate the over/under allocation, we need to use the following formula:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 266,000 - 250,000

Underapplied overhead= $16,000

Peter has just paid $100 for a comic book, not because he thinks it is worth $100 or because he likes comic books, but because he thinks he can sell it for $200 next month. Peter is:

Answers

Answer:

investing

Explanation:

buying somthing to sell later because of the profit

Ivanhoe Corporation, a manufacturer of Mexican foods, contracted in 2020 to purchase 1000 pounds of a spice mixture at $4.00 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had dropped to $3.70 per pound. In 2020, Ivanhoe should recognize:______________

Answers

LAnswer:

Loss of $300

Explanation:

Calculation for the what Ivanhoe should recognize in 2020

2020 Recognized Amount=(1,000 pound*$4.00 per pound)-(1,000 pound*$3.70 per pound)

2020 Recognized Amount=4,000 pound-3,700 pound

2020 Recognized Amount=300 pound

Therefore what Ivanhoe should recognize in 2020 is LOSS of 300 pound

Select the incorrect statement regarding upstream and downstream costs. A. Companies normally incur significant downstream costs. B. To be profitable, companies must recover the total cost of developing, producing, and delivering products. C. Pricing decisions must consider both upstream and downstream costs in addition to manufacturing costs. D. Upstream and downstream costs are reported as product costs on the income statement.

Answers

Answer:

D. Upstream and downstream costs are reported as product costs on the income statement.

Explanation:

Downstream cost is the cost that are spend by the company when the process of the production is completed or the product is ready for delivery made to the customers so this cost would be considered as a distribution to the marketing

While on the other hand the upstream cost is the cost i.e. spend prior to the process of the production like buying of the raw material, product design & development etc

So the downstream would not be recorded as a product cost but it would be recorded as a period cost in terms of the selling and marketing expense

Therefore the option D is incorrect

Problem 8-2A Record notes payable and notes receivable (LO2)
[The following information applies to the questions displayed below.]
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.6 million cash on October 1, 2015, to provide working capital for anticipated expansion. Precision signs a one-year, 8% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.
1. Prepare the journal entries on October 1, 2015, to record the issuance of the note.
2. Record the adjustment on December 31, 2015.
3. Prepare the journal entry on September 30, 2016, to record payment of the notes payable at maturity

Answers

Answer:

1. Prepare the journal entries on October 1, 2015, to record the issuance of the note.

Journal entry for Precision Castparts

Dr Cash 40,600,000

    Cr Notes payable 40,600,000

Journal entry for Midwest Bank

Dr Notes receivable 40,600,000

    Cr Cash 40,600,000

2. Record the adjustment on December 31, 2015.

Journal entry for Precision Castparts

Dr Interest expense 812,000

    Cr Interest payable 812,000

Journal entry for Midwest Bank

Dr Interest receivable 812,000

    Cr Interest revenue 812,000

3. Prepare the journal entry on September 30, 2016, to record payment of the notes payable at maturity

Journal entry for Precision Castparts

Dr Notes payable 40,600,000

Dr Interest expense 2,436,000

Dr Interest payable 812,000

    Cr Cash 43,848,000

Journal entry for Midwest Bank

Dr Cash 43,848,000

    Cr Notes receivable 40,600,000

    Cr Interest receivable 812,000

    Cr Interest revenue 2,436,000

Even though the moving averages help highlight the long-run trend of a time series, the moving-average model is not designed for making forecasts in the presence of trends. Explain the reason why we should not rely on moving averages for predicting future observations of a trending series.

Answers

Answer:

Moving averages cannot be used to make future forecasts successfully because certain events like demand, supply ,quality and external factors such as competitions cannot be determined with the use of Moving averages, and these factors have a huge impact on prices

Explanation:

Moving averages are generated / obtained using data from events that occurred previously hence they highlight the long-run trend of a time series, but they cannot be used to make future forecasts successfully because certain events like demand, supply ,quality and external factors such as competitions cannot be determined with the use of Moving averages. and these factors have a huge impact on prices

A company had a beginning balance in retained earnings of $43,300. It had net income of $6,300 and declared and paid cash dividends of $5,700 in the current period. The ending balance in retained earnings equals:

Answers

Ending balance is $43,900. You take the beginning balance of RE, add net income (or subtract net loss) then subtract any dividends paid.

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Job. No. Balance 356 $ 450 357 1,235 358 378 359 689 360 456 Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job. What is the balance of Sales for Adams Company at the end of the first quarter

Answers

Answer: $‭2,685‬

Explanation:

For the balance of Sales, look at Jobs that were sold in the first quarter.

Jobs 356 and 357.

They were sold at $500 profit each.

Balance of sales = (450 + 500) + (1,235 + 500)

= $‭2,685‬

Perry Freight Co. leased a trailer to Harper Inc. for use in delivering inventory. The finance lease has a 3-year term, 5% implicit rate, and begins on January 1, 2018. The lease requires a down payment of $10,000 and two equal annual lease payments on December 31 of 2018 and 2019. The list price of the trailer on the inception date is $50,000. What is the dollar amount of each annual payment that Perry Freight Co. will receive

Answers

Answer: $21512

Explanation:

The dollar amount of each annual payment that Perry Freight Co. will receive will be calculated thus:

Lease Price of trailer = $50,000

Less: Down payment = $10,000

PV = $50,000 - $10,000 = $40,000

The present value will be the value of the annual installments multiplied by the annuity factor. Therefore,

$40,000 = Annual installment × 1.8594

Annual installment = $40,000 / 1.8594

Annual installment = $21512

The dollar amount of each annual payment that Perry Freight Co. will receive is $21512.

R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R. C. orders 500 units each time he places an order, what would the total annual holding cost be

Answers

Answer:

$1,200

Explanation:

total annual holding cost = average number of units in inventory x annual holding cost per unit

average number of units in inventory = 500 units / 2 = 250 unitsannual holding cost per unit = $48 x 10% = $4.8

total annual holding cost = $4.80 x 250 units = $1,200

Total annual holding cost per unit includes all the costs associated to keeping a certain inventory level, e.g. warehouse costs like rent and utilities, salaries of hte employees that work in the warehouse, insurance, etc.


What are the step(s) when using the Sales with Payment customer
workflow?

Answers

Answer:

Option (d) is correct

Explanation:

Create Invoice > Receive Payment deposited to the Undeposited Funds account > Create Bank Deposit.

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Suppose your company needs $43 million to build a new assembly line. Your target debt-equity ratio is .65. The flotation cost for new equity is 6 percent and the flotation cost for debt is 2 percent. Your boss has decided to fund the project by borrowing money because the flotation costs are lower and the needed funds are relatively small. a. What do you think about the rationale behind borrowing the entire amount?

Answers

Answer: See explanation

Explanation:

Debt = 0.65

Weight = 39.39%

Cost for debt = 2%

Product = 39.39% × 2%

= 0.3939 × 0.02

= 0.007878

Equity = 1.00

Weight = 60.61%

Cost for equity = 6%

Product = 60.61% × 6%

= 0.6061 × 0.06

= 0.036366

Weighted average floatation cost:

= 0.007878 + 0.036366

= 0.044244

= 4.42%

The true cost of the building will then be:

= Funds needed / (1 - Floatation cost)

= $43,000,000 / (1 - 0.044244)

= $43,000,000 / 0.955756

= $44,990,562

Ivanhoe purchased a patent from Vania Co. for $1,240,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Ivanhoe determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020

Answers

Answer: $744,000

Explanation:

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

First, we have to calculate the amortization recorded up to 2019. This will be:

= (1,240,000 / 10) x 2

= 248,000

The we calculate the amortization to be recognized in 2020. This will be:

= (1,240,000 – 248,000) / 4

= 248,000

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

= 1240000 - 248000 - 248000

= $744,000

During 2021, its first year of operations, Ashbaugh Industries recorded sales of $21,000,000 and experienced returns of $1,400,000. Returns are accounted for as they occur, with additional estimated returns accrued at the end of the period. Cost of goods sold totaled $12,600,000 (60% of sales). The company estimates that 8% of all sales will be returned. The year-end adjusting journal entry to account for anticipated sales returns would include a:

Answers

Answer:

Credit to refund liability of $280,000.

Explanation:

The year end adjusting entry would be

Sales Return $280,000 ($21 million × 8% - $1,400,000)    

    Refund Liability  $280,000    

(Being the anticipated sales return is recorded)

Here the sales return is debited as it increased the sales return and the refund liability is credited as it increased the liabilities

The same is to be considered

Zycon has produced 10,000 units of partially finished Product A. These units cost $15,000 to produce, and they can be sold to another manufacturer for $20,000. Instead, Zycon can process the units further and produce finished Products X, Y, and Z. Processing further will cost an additional $22,000 and will yield total revenues of $35,000. Identify whether the item is relevant or irrelevant to the sell or process further decision.

Answers

Answer:

Cost relevant or irrelevant for decision making to sell or process further

a. $15,000 already incurred is not relevant because this is sunk cost. This cannot be avoided or changed.

b. $20,000 selling price is relevant for decision making because this incremental revenue is generated if goods are sold semi-finished.

c. $22,000 additional selling price is for decision making because this cost is required for further processing and shall be incurred.

d. $35,000 revenue from processing is relevant for decision making because this incremental revenue is generated if goods are after further processing.

Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2021
Net sales $1,925,000
Expenses:
Cost of goods $1,100,000
sold
Operating expenses 610,000
Depreciation expense 55,000
Income tax expense 45,000
Total expenses 1,810,000
Net income $ 115,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
Increase (I) or Decrease
2021 2020 (D)
Cash $107,000 $87,500 $19,500 (I)
Accounts receivable 45,500 51,500 6,000 (D)
Inventory 80,000 57,500 22,500 (I)
Prepaid rent 3,500 6,000 2,500 (D)
Accounts payable 50,000 39,500 10,500 (I)
Income tax 5,500 12,500 7,000 (D)
Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)

Answers

Answer:

Cash flow from Operating Activities

Net income                                            115,000

Add Depreciation                                  55,000

Add Income tax                                      45,000

Decrease in Accounts receivable           6,000

Increase in Inventory                            (22,500)

Decrease in Prepaid rent                        2,500

Increase in Accounts payable               10,500

Cash Generated from Operations        211,500

Income tax paid                                    (38,000)

Net Cash from Operating Activities     173,500

Explanation :

The operating activities section of the statement of cash flows shows the Cashflow results from the Operating or Normal trading business of the organization.

At the beginning of 2017, Wallace Corporation issued 10% bonds with a face value of $6,000,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5,558,400 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2017? (Round your answer to the nearest dollar.)

Answers

Answer:

$669,018

Explanation:

The computation of the interest expense reported is shown below:

Date     Interest Payment  Interest       Amortization of   Balance  Book

        (Face Value ×          Expense [B]  Bond Discount                    value

          Coupon Rate                               (A-B)                                      of

            × 1 ÷ 2) [A]                                                               Bonds

02-Jan-17                                                                     $441,600 $5,558,400

30-Jun-17 $300,000      $333,504       $33,504  $408,096      $5,591,904

(6,000,000 ×10% ×1 ÷ 2) ($5,558,400 × 12%   ($441,600 - $33,504)

                                                × 1 ÷ 2)                   (5,558,400 + 33504)

31-Dec-17 $300,000      $335,514

($6,000,000 × 10% ×1 ÷ 2) ($5,591,904 × 12% ×1 ÷ 2)    

The total amount of interest expense is

= $333,504 + $335,514

= $669,018

which of these statements reflects a long-term goal
A- "I want to be a public relation specialist"
B- " I want to pass my state licensing exam"
C- "I want to enroll in weekend classes"

Answers

Answer:

A.  "I want to be a public relation specialist"

Explanation:

"I want to be a public relation specialist" of these statements reflects a long-term goal.

What is the statement?

Statements are sentences that express a fact, idea, or opinion. Statements do not ask questions, make requests or give commands. They are also not utterances. Statements are sentences that express a fact, idea, or opinion. Statements do not ask questions, make requests or give speech acts. They are also not exclamations.

A corporation or organization's public image is created and maintained by public relations professionals. They produce material, such as press releases and social media posts, that influence public perception of the business or organization and raise brand recognition. statement

This concept is significant to the ethnographic interview process by conducting an ethnographical interview, the interviewer is attempting to gain a good understanding of the social difficulties in which clients and their family units exist and how they perceive and understand those situations.

Therefore, option (A) is correct.

Learn more about the statement here:

https://brainly.com/question/2285414

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When an interviewer introduces a new topic area, she is using a
A trick question
B secondary question
C turn-taking question
D primary question

Answers

Answer:

D. Primary question

All employees of United Company are covered by a group hospitalization insurance plan, but the employees must pay the premiums ($8,000 for each employee). None of the employees has sufficient medical expenses to deduct the premiums. Instead of giving raises next year, United is considering paying the employee's hospitalization insurance premiums. If the change is made, the employee's after-tax and insurance pay will:

Answers

Answer:

a.Increase more for the higher income (35% marginal tax bracket) employees.

Explanation:

As in the question it is mentioned that the United company will pay the premium of $8,000 on behalf of each employee so it would be compensated from the salary of the employee and it could be comes under the taxable income

Therefore as per the given options, the option a is correct as it would be taxed at 35% tax rate from the salaries of the employees

Therefore all the other options are incorrect

Macmillan Toys Inc. is looking to expand internationally and wishes to develop a new product line that is highly localized while keeping their cost structure below that of their rivals. Macmillan Toys Inc. has been successful with implementing a blue ocean strategy in their main strategic business units and as such wishes to pursue a ________ strategy for their international operations. Multiple Choice transnational multidomestic international global standardization

Answers

Answer:

Multi domestic strategy

Explanation:

Blue Ocean strategy is one in which a company puts emphasis on having a product that had more quality than the competition.

This implies that the company can make more profit as consumers are willing not pay higher price for the product.

Macmillan Toys Inc. is looking to expand internationally and wishes to develop a new product line that is highly localized while keeping their cost structure below that of their rivals.

They can do this by adopting the multidomestic strategy.

This strategy is designed to get maximum local response by tailoring the product and marketing approach to the country in which they are selling.

So different countries will have their unique product specifications

Macmillan Toys Inc. has been successful with implementing a blue ocean strategy in their main strategic business units and as such wishes to pursue a Transnational strategy.

What is a Transnational Strategy?

A transnational strategy is adopted by businesses that wish to conduct their affairs across various nations.

This strategy ensures that there is cooperation and synergy between all the operational branches of the nation across the world. This strategy will be adopted by Macmillan Toys Incorporated.

Learn more about Transnational Strategy here:

https://brainly.com/question/25629927

Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 11% per year. The risk-free rate of return is 8%, and the expected return on the market portfolio is 18%. The stock of Todd Mountain Development Corporation has a beta of 0.80. Using the constant-growth DDM, the intrinsic value of the stock is _________. Multiple Choice 8.80 11.11 27.27 60.00

Answers

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend  ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

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